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2020-08-31-accounts

REGISTERED COMPANY NUMBER: 04899075 (England and Wales) REGISTERED CHARITY NUMBER: 1102007

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

FOR

CLEETHORPES CHILDCARE

CLEETHORPES CHILDCARE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Page
Report of the Trustees 1 to 11
Independent Examiner's Report 12
Statement of Financial Activities 13
Balance Sheet 14
Notes to the Financial Statements 15 to 20
Detailed Statement of Financial Activities 21 to 22

CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The Charitable Objectives of Cleethorpes Childcare are:

In accordance with the Aims of the adopted Memorandum and Articles of Association of the Pre-school Learning Alliance:

To enhance the development and education of children primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups and by:

Activities:

The Work of the Executive Committee

The trustees confirm they have referred to the guidance contained in the Charity's Commission's guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.

Professional memberships & advisors

We continue as members of the Early Years Alliance (formerly Pre-school learning Alliance), the membership organisation offering online training and regular updates of information and advice relating to the Early Years Sector which supports the development of services within Cleethorpes Childcare. The General Manager continues to represent Cleethorpes Childcare as a trustee for the national Charity.

HR service advice and support has been identified through Beetenson & Gibbon Solicitors on an as-and-when basis which meets our requirements alongside the Lawcall advice service we continue to access through our Early Years Alliance membership.

Fundraising and events

The Executive Committee, through the Fundraising and Events sub-committee, work with staff and volunteers to plan and organise events and activities throughout the year. This year we accessed a one-off Coastal Community Fund to hold a Funday in October 2019 which promoted Cleethorpes coastal area and local businesses. As a community based service provider, we offered all parents and family members a free event at Cleethorpes Boating Lake paddock where families enjoyed seasonal activities, natural crafts, storytelling and guided beach walks. Our local Spar shop donated bottled water and fruit for this event and an environmentally friendly goodie bag was made up for every child attending to promote the local area to local families.

Christmas Hampers were donated this year and were used for fundraising through a Christmas name card in each setting, raising £200 with no outgoings. Christmas gifts were also purchased for the children, selection boxes for older children at Hardys Den and books for pre-school children.

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

OBJECTIVES AND ACTIVITIES

Fundraising and events (cont.)

Fundraising activities and special events held this year include:

Welcome meetings and information sessions were held slightly differently this year due to Coronavirus restrictions on the number of people allowed to attend meetings. Usually, we hold a welcome meeting for all parents in one session where we also check registration forms and payments ready for September intake of children. This is then followed up with an open day each September before children start pre-school. This year, each family was offered an individual appointment to meet outdoors with their keyperson, and setting manager to check paperwork and registrations, discuss any concerns and support settling their child into a setting which many had not yet seen. This has proved to be beneficial in supporting and reassuring families regarding the level of care, and specific measures we had in place to protect children, parents and staff.

Easyfundraising is proving to be a small but steady income received from retailer donations when parents/ staff purchase through the Easyfundraising app. As this requires only general promotion to families, this has very minimal effort to support our fundraising efforts.

Between September 2019 and March 2020, we employed a member of staff to work for approximately 6 hours per week during term time to seek out funding opportunities and grants. This was unable to continue once Coronavirus Lockdown commenced due to staff moving to home working. In the first half of the year, we successfully gained £1500 from Swinton Building Society towards outdoor play area at Signhills and Asda donated £200 in lieu of their token scheme, also towards the outdoor area.

Public relations and marketing

Although word of mouth has, as always, proved to be our widest source of publicity, we also receive free advertising from Families First, a service provided by North East Lincolnshire Council. Families First support families accessing free funding entitlements, giving out a list of all registered providers within the authority. They also have a Facebook page and website. This year, they have also allowed individual providers to advertise through their Facebook page to promote parental take up of childcare due to Coronavirus issues regarding parental confidence and low levels of interactions between settings who were unable to hold events such as open days. This has been accessed by both Highgate and Signhills Pre-schools however, has appeared to have made very little difference to either setting. As always, many parents access our settings for their youngest children once a child moves on to school and so we remain confident that our service continues to meet the needs of our community.

The Famly app has continued to grow and the communication aspect of this has been utilised more during National Lockdown. For the first part of the year, many of our new parents were able to develop communication with their child's keyperson and this then continued throughout the Coronavirus pandemic with weekly newsletters being sent out to all parents to support their child's learning and development at home. The learning journeys for each pre-school child were frozen following their mid-year assessment however parents were encouraged to share photographs and home learning activities with their keyperson and this enabled us to keep children on track, particularly for those who would continue childcare places in September.

Holding our Coastal Funday in October 2019 gave us an opportunity to develop new relationships with local businesses however, this was restricted by the amount of hours available for volunteers to commit to building these relationships. We did receive interest and support from new sources and intend to follow these up in the future to maintain local relationships beneficial to all parties.

During the Coronavirus pandemic we have taken a more pragmatic approach to marketing, agreeing on maintaining a presence in our existing community rather than focus on wider scale advertising. We recognise that we do need to focus on marketing as projected birth rates and enquiries are reducing and will review the business plan to reflect this for future years.

We continue to value the close relationships we share with our local Academies and Children's Centres and are grateful for their promotion of our services through distribution of our contact and event details.

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE General

This year we have focussed on consolidation as we were aware of falling birth rates affecting number of children on roll.

We have continued to utilise the internal communication between parents and staff via Famly and have seen a steady growth in the way parents and carers use different areas of the software. We also continue to promote our settings and activities through Facebook which, though sporadically placed, proves a useful way to advertise our services and for external families to message and keep in touch.

We have been able to continue our work with Rivelin Care home for the initial part of the year however we have been unable to continue this due to the risks associated with contact during the Coronavirus outbreak.

The search for new premises has continued in the background work of the General Manager and Committee however we have as yet been unable to find anything suitable for purpose within the local area and has not proved to be a priority under the pandemic status.

We have maintained our staff development, investing in and supporting appropriate and core training at all levels. Our apprentices continued to work towards level 3 and one of our staff members achieved her BA in Early Years. During national lockdown we took the opportunity to enhance and update skills for all staff in core training such as Food Hygiene, Behaviour, Prevent and safeguarding but also with additional courses in Infection Control and Wellbeing, these being more relevant during Coronavirus. Three members of staff also took maternity leave during this year though as we were focussed on consolidation, we did not recruit for these posts but offered personal development opportunities for current staff to ensure we covered the ratios appropriately and maintained high quality services.

Once National Lockdown for Coronavirus was announced in March, we closed all of our settings according to Government Guidance. We assessed the needs of families who met set criteria laid out by Government and opened Signhills Pre-school to accommodate children of keyworkers and vulnerable children after completing a full risk assessment. As there was a very limited uptake of places across both settings, we opened one site for both pre-schools children to attend and staffed this in a safe and secure way to ensure we maintained hygiene and infection control levels. Key staff members were invited to work either in setting or to support communication levels between families and also between staff who were furloughed, keeping contact between staff to a minimal level according to guidelines at that time. From 1st June 2020, The Government opened out schools and Early Years settings for all children however uptake of places was still very low as parents expressed concerns for sending their children into settings. We assessed again and re-opened Highgate Pre-school alongside Signhills Pre-school, again with very low numbers of children attending and following a fully updated risk assessment. We re-introduced additional members of staff at this point too with the intention of gradually returning to normal levels in each setting. Hardys Den was able to open again for the Summer Holiday sessions where a good number of children were supported to return and enjoy activities with their peers, albeit not opening for every day.

We gained reassurances from Government and North East Lincolnshire Local Authority that we would continue to receive Early Years Funding at anticipated levels for the Summer term 2020. With this knowledge, Trustees were able to fully assess the risks and put cost saving measures in place to see us through closure periods and also to establish admission status for the following academic year. We recognised there were many unknown factors during the Coronavirus Pandemic and we held several informal update meetings between Trustees and Managers to ensure we were able to respond to changes and implement safe and carefully considered actions throughout. These meetings were held virtually and continued in this way in line with guidance.

Some staff were supported to work from home from the end of March 2020. This meant moving technology and communication into homes, ensuring this was suitable for the individuals concerned and retaining safeguarding measures. Although we anticipated the move to home working to be a short term option, we have been able to support and continue this beyond the academic year to maintain safe control measures.

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE

Inclusion

This year staff have supported one child with one-to-one care and education, accessing Early Years Inclusion Funding to support this. Offering care at this level incurs additional staffing, meetings, support for the family, training and paperwork, all of which have been undertaken by knowledgeable, caring and professional staff. The funding received does not fully cover the cost of delivering one-to-one care for each child and therefore we recognise that we only apply for additional support where children are unable to be fully integrated into the setting without it.

We are unable to access any funding for out of school and holiday care however, we often find ourselves supporting the individual needs of school age children with working parents or who need some respite and incorporate these children into everything we offer within Hardys Den.

We continue to see an increase in children who need low level additional support for communication and for those who have professional external intervention such as Social Workers for Child Protection. We have named Special Educational Needs Co-ordinators (SENCo's) in each setting and each setting Manager, Deputy Manager and SENCo are trained at Level 2 in Safeguarding to enable us to professionally support children and their families through specific strategies and interventions. These qualified staff are able to support other team members with signposting, monitoring, report writing and interventions on a daily basis which leads to a second nature approach to inclusion and respect for children and families.

Setting managers and SENCo's attend regular network, webinars and training meetings, more recently in a virtual capacity, and disseminate information and knowledge to the rest of their staff team to enhance best practice in meeting the individual needs of all children attending our settings. The local authority Inclusion Support team offer additional in-setting knowledge, support and advice to ensure we maintain procedures in line with the SEN Code of Practice. We have also gained professional support from local Children's Centres, Child Development Centre and Speech and Language therapists, which further enhance the services we provide for all families.

We have received Early Years Pupil Premium (EYPP) funding this year however this remains an unpredictable amount which is received almost a term after a child becomes eligible. This fund is accessed for 3 & 4 year old children, whose parents meet set criteria and is used to provide financial or developmental support for children in need. This year we have continued to develop staff training and provided additional staff within higher than required ratios to enhance children's learning experiences and opportunities with the aim of children gaining the best start in their education. We have also accessed Yoga for children at Signhills Pre-school for one session per week, until March 2020, to support overall physical development as we recognise the benefit and impact of this across all areas of learning and development. EYPP has also supported additional staff time for increased communication/contact with parents and families.

Quality Assurance

The General Manager works alongside each setting manager to monitor and evaluate practice within each childcare provision, in turn informing staff development and progression.

We have been fortunate to have managed and maintained the quality in all of our provisions this year, despite the impact of reacting to Covid-19. Our policies and procedures were reviewed quite quickly as Coronavirus began to take hold across the country however, we found we did not need many updates but updated Emergency Closure, Health and Safety and Uniform policies to ensure we could meet supplies for personal protective equipment, to ensure parents have a clear understanding of the symptoms of Coronavirus and reasons why a child may not attend if ill and to ensure we had a clear and consistent closure policy which would be implemented in case of emergency closure- which we had to implement for three days in March.

North East Lincolnshire Local Authority continued to provide support for our settings through Early Years Teacher/ Advisor/ Area SENCO input. Managers work alongside the advisor to enhance quality within the settings. We continue to hold regular staff meetings (more recently virtually) to disseminate information and address areas for improvements. Individual staff members are supported in development through induction, 1-1 meetings and role supervisions.

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE

Staff Training and Development

Staff members undertake and update core elements of training to support their professional development which includes Safeguarding, Paediatric First Aid, Understanding and Addressing Behaviour, Prevent duty and Food Hygiene & Safety in the form of a short course, workshop or online training refresher through Educare.

Staff members have received support to undertake training courses, and workshops over the year including:

BA Hons Degree in Early Years Level 6 (1 member)
Safeguarding (inc. refresher) Level 1 (3 members)
Paediatric First Aid Level 3 (7 members)
Food Hygiene Level 2 (5 members)
Understanding & Addressing Behaviour Level 2 (4 members)
Early Years & Childcare (Apprenticeship) Level 3 (2 members)
Health & Safety Level 2 (7 members)
Prevent Duty (4 members)
Cultural Capital (2 members)
Exploring Education Inspection Framework (2 members external & 24 internal training)
Intensive Interaction (2 members)
Infection Control (18 members)

During national Lockdown, as more training was supported for furloughed and working staff, the breadth of training courses being accessed increased. Staff undertaking training are supported financially and with workplace release and at degree level with additional mentor support meetings.

In-House training has been informal again this year reviewing Famly software and looking at the Education Inspection Framework. Every member of the childcare team was provided with an Early Years Alliance publication which supported the in-house training to focus on and reassure staff of their role and responsibility in meeting the Ofsted framework.

The General Manager has continued her representation to the Early Years Alliance throughout this year as a Trustee for the national organisation and a member of the Audit Committee. Committee members recognise and support these roles for the General Manager's continuing development as information and skills are shared and developed for the benefit of both organisations.

Induction for new committee members took place in November and December 2019, following the Annual General Meeting elections. Members comment that they find this a very useful overview of the organisation and that it helps them to better understand their roles and responsibilities.

Students and Volunteer Placements

Placements for students has been restricted this year due to our own commitment to apprentices and also due to the Coronavirus pandemic limiting visitors to the setting.

Due to limitations on events and activities over the year, an estimated total of 135 volunteer hours and no student volunteer hours have been undertaken.

Visitors and liaisons

We continue to work with other professionals and this year have had visits from The Yoga Studio, NE Lincs advisors, Early Years Inclusion Support Officer, Tempest Photographers, University Centre Grimsby assessor, Speech and Language therapist, Health visitors, Signhills Infant & Junior Academies; Thrunscoe Primary Academy & Nursery, Technical Support Services, Gas Wise, Health Visitor, William Wong (Chinese New Year), Family Hub support worker, City Pat, Skanska (Community Liaison Day), Engie, Police, Haiths Heating, Excell & Early Years Alliance.

The General Manager continues to represent our organisation and the private, voluntary and independent sector (PVI) at Schools Forum where decisions affecting the allocation of government finance for educational sectors takes place.

Cleethorpes Childcare continues to operate as a preferred provider for The Hub Children's Centres and in particular Highgate Children's Centre. Informal meetings have taken place to ensure the Children's Centre remit of family support, health, safeguarding and partnership working is met through partnership engagement.

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENT AND PERFORMANCE

Professional Advisors

We have sought advice throughout the year from Professional Advisors, which are: TSB Bank, 9 Old Market Place, Grimsby, DN31 1BN HSBC UK, PO Box 68, 130 New Street, Birmingham, B2 4JU Smethurst & Co LLP, 12 Abbey Road, Grimsby, DN32 0HL Lawcall, Early Years Alliance, 50 Featherstone Street, London, EC1Y 8RT Early Years Alliance Membership and Insurance, 50 Featherstone Street, London, EC1Y 8RT Dataplan Payroll services, 1 Prince Albert Gardens, Grimsby DN31 3AG

FINANCIAL REVIEW

Financial review

This relates to the enclosed financial statement as agreed by the Executive Committee and in accordance with the accounting procedures determined by Companies House and the Charity Commission.

In the previous year, we anticipated our challenge to be reminding Government of the funding issues for Early Years settings whilst they focussed on the Brexit strategy however we did not anticipate the impact Covid-19 would have on our organisation, and indeed on the whole world. We continue to take up challenges and opportunities to highlight the insufficient funding for Early Years provision and the General Manager has communicated with MP Martin Vickers several times over the latter five months of our financial year to discuss funding, furlough eligibility and poor availability of PPE supplies.

The main source of income for the pre-school groups continues to be from Early Years Entitlement (EYE) for 2, 3 and 4 year old children attending our settings. This has fortunately been supported through Government and has continued during the Coronavirus pandemic at the rate anticipated for the summer term 2020, despite limited attendance and temporary closure of all services apart from Signhills Pre-school.

Additional income is from fees in Hardys Den and for pre-school children not eligible for FFE, those taking sessions in addition to their FFE capacity or from children who attend the pre-school lunch clubs. Fees are reviewed annually to ensure they remain affordable to parents, maintain sustainability of the provisions, reflect local pay scales and are competitive within the marketplace. Further income is raised from fundraising activities throughout the year to enable us to enhance children's resources and experiences. Pre-school children are asked to pay a resource/consumables contribution which was reviewed and remained at 75p per child per session, with the majority of families paying this within the allocated timescales, in accordance with our fees policy. The initial registration fee was increased this year due to ongoing increases in our outgoings. Pre-school registration includes a sweatshirt or cardigan for each child as well as a polo t-shirt and supports the costs of printing booklets, providing badges and book-bags along with administration time for this preparation. This is reviewed as a minimal one-off cost to parents whilst Hardys Den administration fee is charged and reviewed annually. Registration fees do not present a barrier for entry to our settings as parents fully understand the reasons for this cost and we are able to support parents with scheduled payments so their child's start date is not delayed.

The Famly software has continued to support us with our invoicing and to enable parents to see their balance and payments due at a glance. Fee payments continue to be monitored to ensure we have a sustainable cash-flow. We have continued to see a significant increase in fee payments directly through online banking as this alleviates time for childcare managers and supports direct accountability and recording of payments, whilst reducing the risks of holding cash on our premises. This move has proved vital during National Lockdown when contact points needed to be limited. Good communication between families and the administration team ensure that we offer all opportunities for parents to pay under mutually agreed terms. Outstanding fees are a regular agenda item at committee meetings and the Finance Administrator provides updates to each setting manager to allow them to monitor payments from their own families, enabling us to make initial approaches to accounts informally and prior to escalation. We continue to recover debts via HMRC online where all other attempts have failed.

Cleethorpes Childcare had growing concerns over the service from TSB banking following their change in online banking and removal of BACS service from April 2017. New and suitable bank accounts were investigated and in November 2019 we made the final move towards HSBC where we have been able to access all of the services we require.

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW

Financial review (cont.)

The ongoing increases to the National Minimum Wage and National Living Wage continue to challenge our financial viability. Trustees again reviewed the staff payroll structure to account for future potential increases which impact on the differentials between rates paid for each level of job responsibility, whilst recognising qualifications and potential progression opportunities through the organisation, which in turn may provide job security. Any increase in employer pension contributions are also factored into our predicted financial expectations and implemented through the Nest and Halifax pension schemes.

Highgate Pre-school service charges continue to prove an ongoing issue however we have had some success in negotiating some of the issues previously raised to reach a fair agreement. Despite requesting a full breakdown of the service invoice, we have yet to see this in detail. We did not resolve the previous years query regarding 90% discount which we had been granted on the rent over previous years and apparently was not applicable to our lease agreement and this remains an ongoing query which may be addressed upon anticipated lease renewal in October 2020.

We have been able to purchase I-phones to support staff working in the settings as we recognised that some of the workplace stresses for staff related to poor technology functions and found these to work best with the internet connections and Famly software we have in place. Most technical issues have been reduced now and mainly relate to internet issues which we gain support from Technical Support Services as and when required.

Guarantors

Members of the Charitable Company guarantee to contribute an amount not exceeding £1 to the assets of the Charitable Company in the event of winding up. The total number of such Guarantors at 31st August 2020 was 155.

Reserves

Reserves are currently held to support Cleethorpes Childcare in meeting future potential expenditure:

Risk Review

This year has proved a challenge for all charities and businesses and we recognise that we have been well placed and fortunate to have achieved as much as we have over the year. We are never complacent and continuously review our current and future market position to ensure we are in touch with the needs of the local community through completion of a Business Plan, Risk Analysis and regular Executive Committee meetings. Although trustees are not aware of any major risks to which the charity has been exposed, concerns have been noted regarding the continuation of financial support from Early Years Entitlements in light of the current pandemic.

We continue to have concerns regarding the potential a School/Academy has to cease a lease agreement, in relation to sustainability. This risk continues to be monitored and reported at committee meetings and strategies to secure continuing viability have been implemented to confirm we remain a going concern. We continue to seek security of tenure in suitable premises within our current community base.

The Trustees ensure the agenda for each meeting promotes full monitoring and evaluation of government / local challenge to mitigate risk.

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

PLANS FOR FUTURE PERIODS

Future Sustainability

We anticipated challenges with lower birth rates in our community and were prepared for this by way of limited recruitment of new staff and adjusting expenditure in as many ways we were able. From March 2020, the focus of sustainability shifted seriously when a Coronavirus Pandemic hit the world. We have been able to adapt, reflect and secure appropriate funding to maintain our services and feel fairly well placed with Government backing the need for childcare for working parents to ensure we remain fairly stable for the foreseeable future. In reality, the Coronavirus Job Retention Scheme (furlough) and EYE funding have supported Cleethorpes Childcare throughout the Covid crisis and, providing government continue to fund 2, 3 and 4 year old childcare places we feel well placed again to make appropriate physical and financial adaptations for the foreseeable future.

We are aware our premises leases are approaching renewal and aim to renegotiate and continue with these. Consolidation of service and quality remain an ongoing focus.

Our ability to react to the unknown is down to the superb experience of staff and committee members as, though never experiencing a pandemic previously, their skills are balanced to be able to make clear and fair judgements and to address and react quickly to risks when they are presented.

Trustees recognise the challenges in continuing to meet the needs of the community and identify potential expansion within the current and/or new provisions. We are confident that, with the knowledge and experience within the organisation, partnerships and community involvement, representations to local and national networks and the long established record of quality provision, we are well placed to remain flexible and review our services accordingly.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Structure

Cleethorpes Childcare consists of:

Appointment of Members

An Annual General Meeting was held in November 2019. New members were appointed and suitable checks and registrations were undertaken alongside their induction programme. All member families are invited to attend the AGM; a member is an adult representative for a child who attends any of the settings of Cleethorpes Childcare. As in previous years, a meeting date was agreed and publicised at each of Cleethorpes Childcare provisions to allow parents and member representatives to attend. An induction meeting was held in November to ensure all elected members fully understood their responsibilities and duties prior to the first committee meeting which followed the AGM. At the first meeting, officers were voted into post by fellow trustees. Training, both formal and informal, is offered for committee members should they wish to further develop their skills and knowledge through Educare, offered as part of our Early Years Alliance (formerly Pre-school Learning Alliance) membership. In this voluntary role, committee members offer their time and expertise in the decision making of Cleethorpes Childcare. Elected members often offer practical time to carry out further duties throughout the year within the childcare provisions or through fundraising, community events and activities.

In more recent years, we have found it more difficult to recruit new committee members into Cleethorpes Childcare and have continued to work with staff to build connections with families and identify potential new members. This continues year on year and has been incorporated into all meetings between staff and parents as a less formal approach to recruitment.

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Staffing

The executive committee have a responsibility to ensure that staff are employed within the company to meet the company objectives. A General Manager is employed to oversee the day-to-day running of the work of Cleethorpes Childcare within each provision and in addition to this, an average of 26 members of staff have worked to provide high quality care and education for the children who have attended, offering support and information to parents and family members. The number of staff has reduced this year as employees moved onto other posts, not always in the childcare sector. The continuing falling birth rates of children means we have not recruited into these positions. We have continued to support two Level 3 Early Years apprentices who are due to complete their qualifications in December 2020. As appropriate, all staff are supported to develop their skills within the organisation and internal progression is also encouraged when vacancies arise.

In March 2020, as a Coronavirus Pandemic swept across the world, Cleethorpes Childcare faced an uncertain future when Lockdown was imposed across the country. Trustees took a decision to monitor the financial sustainability of the organisation and to support staff in whatever way we could afford to, as well as offering support for well-being. As early years settings were able to open for vulnerable children and children of keyworkers, the General Manager assessed the risks and demand for places before deciding to merge both Pre-school settings onto the Signhills site, opening with minimal staff and children whilst closing Hardys Den as this did not meet government guidelines at that time. Trustees agreed to access support for staff unable to work through the Coronavirus Job Retention Scheme and fully retained the General Manager, Setting Managers, Early Years Professional, Finance Assistant, one Keyperson and Signhills Pre-school cleaner until the end of spring term. Some retained staff were able to work from home to maintain contact with families & staff and to ensure all financial tasks remained up to speed, whilst others worked on the frontline and continued to offer care and education for a small number of children. This level of childcare provision continued over the Easter holidays and into the summer term, with varying attendees, and closing where we were unable to sustain safeguarding requirements for children.

From 1st June, Government recommended all children return to education and, though many parents chose for their child to remain at home, we had sufficient increase in children attending to justify re-opening Highgate Pre-school. Again, minimal staff were able to be retained or part furloughed to care for the children safely at both settings. Hardys Den was still unable to open under Government guidance however this eased towards the end of term and we opened our holiday club to cover the summer period.

The General Manager remained in contact with staff at regular intervals via personal phone calls and newsfeed updates on our Famly software. Staff who were furloughed were supported to keep their core training and additional online training up to date, as identified through personalised weekly programmes. Staff commented that they appreciated this contact and focus as the weeks became months of not being able to work in their usual roles.

For the earlier part of this year, we continued to support a member of staff to work for one day per week to seek grants and funding however, this was discontinued during Lockdown and is under review for future due to it being apparent that we do not meet criteria for most funding streams, and less funding to draw upon.

The General Manager reports to the executive committee on a regular basis at formal meetings and communicates with executive members as required to deal with matters that may arise during the periods between meetings. A setting manager also attends these meetings on a rotational basis to ensure reporting and communication remains paramount.

Policies

Many policies and procedures have been reviewed this year in light of changes regarding health and safety due to Coronavirus. Those which have not been formally reviewed have been checked to ensure they are still appropriate and up-to-date. As always, all policies are made available within each setting and through our website which members, staff and trustees access using a secure password acquired on joining the organisation.

A full Coronavirus Risk Assessment was undertaken in line with Government guidance and Cleethorpes Childcare Policies before re-opening in March 2020, and reviewed whenever guidance changed. All staff returning to work also undertook re-induction training before working in the settings to ensure new procedures and guidance were clearly implemented.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04899075 (England and Wales)

Registered Charity number

1102007

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

Registered office Signhills School Hardys Road Cleethorpes N E Lincs DN35 0DN

Trustees

C Parfrement (resigned 20.11.19) B Rodgers-Gibbs T Whitehead I Baker (resigned 20.11.19) C Moore J Jackson (resigned 20.11.19) L Pendred K Scott L Hammond (appointed 20.11.19)

Independent Examiner Mrs H Spauls FCA ICAEW Smethurst & Co LLP 12 Abbey Road GRIMSBY DN32 0HL

Bankers HSBC PO Box 68 130 New Street Birmingham West Midlands DN35 0DN

Solicitors BG Solicitors LLP 27 Osborne Street Grimsby N E Lincs DN31 1JB

Cleethorpes Childcare is a charitable company limited by guarantee, incorporated on 15 September 2003 and registered as a charity on 10 February 2004.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Cleethorpes Childcare for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 18 November 2020 and signed on its behalf by:

C Moore - Trustee

Page 11

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

Independent examiner's report to the trustees of Cleethorpes Childcare ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mrs H Spauls FCA ICAEW Smethurst & Co LLP 12 Abbey Road GRIMSBY DN32 0HL

18 November 2020

Page 12

CLEETHORPES CHILDCARE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
Designated
fund
fund
Notes
£
£
INCOME AND ENDOWMENTS
FROM
Incoming resources from
charitable activities
348,204
-
Activities for generating funds
2
1,346
-
Other income
1,000
-
Total
350,550
-
EXPENDITURE ON
Costs of generating funds
1,570
-
Charitable activities
Childcare
298,470
-
Premises costs
34,792
6,400
Total
334,832
6,400
NET INCOME/(EXPENDITURE)
15,718
(6,400)
RECONCILIATION OF FUNDS
Total funds brought forward
84,989
13,867
TOTAL FUNDS CARRIED
FORWARD
100,707
7,467		 Restricted
fund
£
5,462
-
-
5,462
-
5,462
3,994
9,456
(3,994)
4,006
12		 31.8.20
Total
funds
£
353,666
1,346
1,000
356,012
1,570
303,932
45,186
350,688
5,324
102,862
108,186		 31.8.19
Total
funds
£
391,248
3,748
-
394,996
2,466
343,014
42,544
388,024
6,972
95,890
102,862

The notes form part of these financial statements

Page 13

CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)

BALANCE SHEET 31 AUGUST 2020

Notes
FIXED ASSETS
Tangible assets
6
CURRENT ASSETS
Stocks
7
Debtors
8
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
9
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
11
Unrestricted funds
Restricted funds
TOTAL FUNDS		 31.8.20
£
12,984
321
15,354
121,239
136,914
(41,712)
95,202
108,186
108,186
108,174
12
108,186		 31.8.19
£
21,734
1,563
9,704
112,332
123,599
(42,471)
81,128
102,862
102,862
98,856
4,006
102,862

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 18 November 2020 and were signed on its behalf by:

C Moore - Trustee

The notes form part of these financial statements

Page 14

CLEETHORPES CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

Grants are recognised in full in the Statement of Financial Activities in the year in which they are receivable.

Donations and gifts are recognised in the Statement of Financial Activities when received.

Incoming resources for the provision of pre-school places and from investments are recognised in full in the Statement of Financial Activities when receivable.

Resources expended

Resources expended are recognised in the period in which they are incurred.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses.

Depreciation is provided on all tangible fixed assets at rates calculated to write off their cost, less estimated residual value, of each asset on a systematic basis over their expected useful lives as follows -

Land and buildings - 20% on reducing balance or over lease term
Fixtures, fittings and equipment - 20% on cost

Fixed assets are not capitalised if they cost less than £100.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.

Designated funds are unrestricted funds earmarked by the management committee for particular purposes.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Leasing commitments

Rents payable under leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Page 15

CLEETHORPES CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

2. ACTIVITIES FOR GENERATING FUNDS

ACTIVITIES FOR GENERATING FUNDS
31.8.20 31.8.19
£ £
Fundraising events 797 2,965
Uniform sales 549 783
1,346 3,748

3. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

4.

31.8.20 31.8.19
£ £
Depreciation - owned assets 11,853 11,413
TRUSTEES' REMUNERATION AND BENEFITS
31.8.20 31.8.19
£ £
Trustees' salaries 27,295 26,540
Trustees' social security 2,567 2,488
Trustees' pension contributions to money purchase schemes 819 796
30,681 29,824

The memorandum of association updated in May 2017 allows trustees of the charity to be a paid employee of the charity, but no trustee can be paid for their duties as a trustee.

Lorna Pendred has been paid for her employment as the general manager of the charity.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.

5. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Furtherance of the entity's activities
Management and administration		 31.8.20
£
251,494
10,950
9,873
272,317
31.8.20
23
3
26		 31.8.19
£
282,069
10,019
8,574
300,662
31.8.19
24
3
27

No employees received emoluments in excess of £60,000.

Page 16

CLEETHORPES CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

6. TANGIBLE FIXED ASSETS

6. TANGIBLE FIXED ASSETS
Fixtures,
fittings
Land and and
buildings equipment Totals
£ £ £
COST
At 1 September 2019 42,291 40,799 83,090
Additions - 3,213 3,213
Disposals - (299) (299)
At 31 August 2020 42,291 43,713 86,004
DEPRECIATION
At 1 September 2019 28,121 33,235 61,356
Charge for year 6,460 5,393 11,853
Eliminated on disposal - (189) (189)
At 31 August 2020 34,581 38,439 73,020
NET BOOK VALUE
At 31 August 2020 7,710 5,274 12,984
At 31 August 2019 14,170 7,564 21,734
7. STOCKS
31.8.20 31.8.19
£ £
Stocks 321 1,563
8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.20 31.8.19
£ £
Trade debtors 6,248 7,750
Other debtors 9,106 1,954
15,354 9,704
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.20 31.8.19
£ £
Trade creditors 98 1,392
Social security and other taxes 1,081 140
Other creditors 10,029 8,157
Accruals and deferred income 30,504 32,782
41,712 42,471

Page 17

CLEETHORPES CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

10. ANALYSIS OF NET ASSETS BETWEEN FUNDS

31.8.20 31.8.19
Unrestricted Designated Restricted Total Total
fund fund fund funds funds
£ £ £ £ £
Fixed assets 5,505 7,467 12 12,984 21,734
Current assets 136,914 - - 136,914 123,599
Current liabilities (41,712) - - (41,712) (42,471)
100,707 7,467 12 108,186 102,862
MOVEMENT IN FUNDS
Net
movement At
At 1.9.19 in funds 31.8.20
£ £ £
Unrestricted funds
General fund 84,989 15,718 100,707
Designated fund 13,867 (6,400) 7,467
98,856 9,318 108,174
Restricted funds
Restricted fund 4,006 (3,994) 12
TOTAL FUNDS 102,862 5,324 108,186
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 350,550 (334,832) 15,718
Designated fund - (6,400) (6,400)
350,550 (341,232) 9,318
Restricted funds
Restricted fund 5,462 (9,456) (3,994)
TOTAL FUNDS 356,012 (350,688) 5,324

11. MOVEMENT IN FUNDS

Comparatives for movement in funds

Net
movement At
At 1.9.18 in funds 31.8.19
£ £ £
Unrestricted funds
General fund 67,459 17,530 84,989
Designated fund 20,267 (6,400) 13,867
87,726 11,130 98,856
Restricted funds
Restricted fund 8,164 (4,158) 4,006
TOTAL FUNDS 95,890 6,972 102,862

Page 18

CLEETHORPES CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

11. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Incoming
resources
£
386,486
-
386,486
8,510
394,996		 Resources
Movement
expended
in funds
£
£
(368,956)
17,530
(6,400)
(6,400)
(375,356)
11,130
(12,668)
(4,158)
(388,024)
6,972		 Resources
Movement
expended
in funds
£
£
(368,956)
17,530
(6,400)
(6,400)
(375,356)
11,130
(12,668)
(4,158)
(388,024)
6,972
11,130
(4,158)
6,972

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Designated fund
Restricted funds
Restricted fund
TOTAL FUNDS		 At 1.9.18
£
67,459
20,267
87,726
8,164
95,890		 Net
movement
in funds
£
33,248
(12,800)
20,448
(8,152)
12,296		 At
31.8.20
£
100,707
7,467
108,174
12
108,186

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Incoming
resources
£
737,036
-
737,036
13,972
751,008		 Resources
Movement
expended
in funds
£
£
(703,788)
33,248
(12,800)
(12,800)
(716,588)
20,448
(22,124)
(8,152)
(738,712)
12,296		 Resources
Movement
expended
in funds
£
£
(703,788)
33,248
(12,800)
(12,800)
(716,588)
20,448
(22,124)
(8,152)
(738,712)
12,296
20,448
(8,152)
12,296

Purposes of designated and restricted funds

Restricted funds at 31 August 2020 represents the carrying value of fixed assets acquired from restricted funds of £12 (2019: £4,006).

Designated funds at 31 August 2020 represents the carrying value of the new building at Signhills of £7,467 (2019: £13,867).

The balances relating to capital expenditure are adjusted each year in line with the depreciation of the assets acquired.

Page 19

CLEETHORPES CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2020

11. MOVEMENT IN FUNDS - continued

Restricted funds also includes funding received to assist with the inclusion of children.

12. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2020.

13. LEASING COMMITMENTS

The following operating lease payments are committed to be paid:

Land and Buildings Land and Buildings
31.8.20 31.8.19
£ £
Expiring:
Within one year 6,863 5,238
Between one and five years 6,489 19,634

Page 20

CLEETHORPES CHILDCARE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

31.8.20 31.8.19
£ £
INCOME AND ENDOWMENTS
Incoming resources from charitable activities
Nursery Education Grant 215,787 271,797
Creche services 372 15,750
Other grants & donations 76,149 -
Fees from parents 61,358 103,701
353,666 391,248
Activities for generating funds
Fundraising events 797 2,965
Uniform sales 549 783
1,346 3,748
Other income
Coastal Community grant 1,000 -
Total incoming resources 356,012 394,996
EXPENDITURE
Fundraising
Purchases for resale 1,570 2,466
Charitable activities
Wages 201,992 232,588
Social security 7,714 6,783
Pensions 9,054 7,778
Training 6,928 12,709
Consumables 3,552 3,941
Books, toys and games 2,715 3,075
Lunch costs and refreshments 2,351 3,627
Bad debts - 1,025
Stationery 4,494 4,334
Telephone 3,318 3,455
Insurance 1,739 1,722
Subscriptions 2,520 2,520
Sundry expenses 511 2,477
246,888 286,034
Premises costs
Rent and rates 32,826 30,036
Repairs and renewals 397 1,095
Depreciation of tangible fixed assets 11,963 11,413
45,186 42,544
Support costs
Other
Trustees' salaries 27,295 26,540
Trustees' social security 2,567 2,488
Carried forward 29,862 29,028

This page does not form part of the statutory financial statements

Page 21

CLEETHORPES CHILDCARE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

31.8.20 31.8.19
£ £
Other
Brought forward 29,862 29,028
Trustees' pension contributions 819 796
Wages 22,207 22,941
Social security 669 748
Accountancy 2,100 2,040
Payroll 1,387 1,427
57,044 56,980
Total resources expended 350,688 388,024
Net income 5,324 6,972

This page does not form part of the statutory financial statements

Page 22